EVMILESTONES

As a cleaner, more efficient and environmentally friendly alternative to gasoline-powered vehicles, electric vehicles (EVs), have seen significant growth in recent years. EVs are now a viable alternative to traditional gasoline-powered cars, thanks to advances in battery technology and a growing network for charging infrastructure. India is the thirdlargest automobile market worldwide in terms of total sales. There is more synergy between manufacturers and policymakers who work together to encourage greener alternatives. India's automotive sector contributes 7.1 percent to its GDP and provides significant employment. With everything moving int he right trajectory for the Indian EV market, we asked some of our experts about what their outlook was on the EV industry for this year. Here is what they had to say...

GOPALAKRISHNAN VC

DIRECTOR AUTOMOTIVE AND EV SECTOR, GOVERNMENT OF TELANGANA

The electric vehicle (EV) industry is rapidly evolving, and the next few years will be critical in determining its future The global EV industry today is about USD 280 billion, and it is expected to reach a market size of USD 1 3 trillion by 2030, at a CAGR of 24 5% Factors such as increasing consumer preference for EVs increasing government incentives and subsidies, and improved battery technology are driving the growth of the EV industry

In the next five years, there are several key factors that will shape the EV industry:

Expansion of Charging Infrastructure: Governments around the world are investing heavily in the development of EV charging infrastructure with an aim to reduce emissions and promote sustainability This will reduce the range anxiety and help to increase convenience of electric vehicles, as well as improve their market penetration

Battery Technology Advancements: Battery technology is rapidly evolving, and this will be a key factor in determining the success of the EV industry in the coming years Advances in battery technology will allow for longer ranges, faster charging times, and improved performance.

Increasing Automation and improved Connectivity: Vehicle automation is an ongoing trend in transportation systems Level 1 or 2 automation enables automatic lane changes and traffic sensing. Majority of new vehicles produced in the US are equipped with this A little less than half of the entire vehicle fleet in China is expected to be automated by 2040 Automated features such as autonomous driving and self-parking will make EVs more attractive to consumers Connected vehicle (CV) technology enables vehicles to communicate with one another, with other infrastructure units and road users, and improves the overall transportation system performance via cooperation CV can also be monitored and controlled remotely, they also allow for over-the-air updates. In addition to automation and connectivity, the electrification of urban transportation systems has been a topic of common interest for all major countries on earth: the EU has made an ambitious commitment of 35% zero-emission vehicles by 2030, and a 1 2 trillion USD infrastructure bill focussing on transportation electrification has been passed by the US

Government Support: EVs help improve fuel economy, lower fuel costs, and reduce emissions, and Governments across the world are laying down roadmaps to achieve emission targets Favourable policies towards adoption of EVs will help drive the market and promote development of the industry Governments have been incentivising vehicle manufacturers to reduce the viability gap, improve capacities and get more product variants rolling in the market

The next five years are expected to be a period of rapid growth for the EV industry Electrification will continue to play an important role in the mobility industry and for a successful transformation the entire mobility ecosystem – EV manufacturers, suppliers, charging station operators, financers - must work towards it The future of the EV industry is bright, and the potential is enormous

Manoj Kumar Upadhyay

DY ADVISER, NITI AAYOG

Hon’ble Prime Minister has given a vision for “LiFE”, or Lifestyle for Environment, to spur a movement of environmentally conscious lifestyle India is moving forward firmly for the ‘panchamrit’ and netzero carbon emission by 2070 to usher in green industrial and economic transition For Green growth Government is implementing many programmes such as green fuel, green energy, green farming, green mobility green buildings and green equipment and policies for efficient use of energy across various economic sectors In the Union Budget FY 24, budget allocation of INR 35,000 crore for energy transition and net-zero targets by 2070 has been announced

The Indian government has set a target to achieve 30% electrification of the country's vehicle fleet by 2030, and has introduced several incentives and policies to support the growth of the EV industry The initial push for promoting sales of electric vehicles has already been set in motion with both Central Government and State Governments like Delhi, Maharashtra, Tamil Nadu, Kerala providing for tax benefits, waiver of road tax and registration fee for electric vehicle buyers Such steps have been appreciated by EV users, which is evident from year-on-year increase in sales of electric vehicles The Economic Survey 2023 predicts that India's domestic electric vehicle market will grow with 49 % compound annual growth rate (CAGR) in between 2022 and 2030, with 10 million annual sales by 2030

The industry was given a major boost in the FY24 Union Budget for the production of electric vehicles, adoption of hydrogen fuel, and embracing changing technologies Customs duty reduction from 21% to 13% on lithium ion cells and an extension of the subsidies on electric vehicle (EV) batteries for one more year are major demand boosters With green mobility identified as one of the priority areas, manufacturing and adoption of alternative fuel vehicles including EVs, has also received impetus 78 % increase in FAME-II subsidy (Rs 5,172 crore) in FY 24 in comprise to FY 23 subsidy (Rs 2,900 crore) underlines the government’s ambitions to meet climate action targets while also reducing fossil fuel dependency and energy imports Adequate funds are allocated to scrap old vehicles of the central government, states will also be supported in replacing old vehicles, including ambulances

As per IEA, Technology and innovation pathways for zero-carbonready buildings by 2030, sales of new internal combustion engine (ICE) automobiles are halted in 2035 in the Net Zero Emissions by 2050 Scenario (NZE Scenario) In parallel, the share of EVs in total sales needs to reach around 60% by 2030 to stay the course and reach net zero CO 2 in 2050. At the end of 2021, the number of electric cars on the road exceeded 16 5 million The global electric car stock expands to almost 350 million vehicles by 2030, but future growth will hinge on efforts to diversify battery manufacturing and critical mineral supplies to reduce the risks of supply bottlenecks and higher prices

Mass adoption of EVs will require regulatory support that advances installation of chargers in residential and commercial buildings, as well as workplaces. The deployment of charging infrastructure, especially in densely populated urban areas, will be driven by city codes and local policies Building codes and regulations will require the installation of EV chargers in new constructions and renovations, where feasible The location of charge points will continue to expand beyond single-family homes to all types of buildings It will be crucial to include or increase charging points in buildings such as apartment complexes offices parking lots or commercial centres. Recharging at home and t work is generally the most convenient and least expensive option for EV owners Although massive deployment of electric vehicles will eventually lead to the need for investments in transmission and distribution grids (due to increased demand), timeof-use electricity tariffs or ideally real-time electricity pricing would nudge users to take the advantage of electricity demand flexibility that EVs have

In addition, to enable the maximum impact of transport electrification, EVs should be considered a distributed energy resource The batteries inside the cars give the opportunity to increase the renewable penetration, by coordinating energy generation and demand, and to exploit the flexibility with grid services (V2G) or aggregation policies These new paradigms and business models should be accompanied by the necessary regulatory changes and electricity market adaptation To allow for an EV to be designated as a distributed energy resource, the charging point should be integrated in the building energy management system.

India’s EV ambitions are gaining strong momentum However, it still lacks EV financing options in rural and semi-urban areas With the emergence of disruptive EV and fintech startups, the year 2023 is predicted to witness a huge shift in providing digital lending solutions to EV users Further, there is no electric vehicle revolution without EV charging, so the key trends in the EV space to look forward to will definitely include Plug & charge, Smart EV Charging and the muchawaited shift to renewable energy. EV lending & financing should be added to the priority sector The EV market is anticipated to welcome a new trend of green financing that will help rural and semi-urban populace to adopt green technology with easy lending solutions

RAJ MEHTA

FOUNDER, GRETA ELECTRIC SCOOTERS

India's goals for growing its electric vehicle industry

The Indian vehicle market is expected to be the third largest in terms of volume by the year 2030 It is a vast home market to serve Federal legislators are implementing redesigned transportation options of "Shared, Connected, and Electric" to address this problem In addition, they have set the ambitious aim of achieving total electrification by 2030

Over the last ten years, the focus in the automotive sector has shifted to EVs With the Zero emission goals in sight, countries across the globe have renewed focus and are working on accelerating the adoption of EVs

Given its manufacturing edge, China has taken the lead in supplying EV batteries and components. In the 2-wheeler segment China is the trendsetter for technological advancement, new models or component supply EV penetration in India is still at its nascent stage Though demand has picked up in the past year, its pace has not picked up at the desired levels because of several factors, such as fear of range, lack of charging infrastructure, availability of components and price India, being a price-sensitive market, price is a big decider

Having set the stage, let us look at what to expect in the EV space in 2023

Growth targets of EVs in India

Through its various policies, the Government has helped attract investment in EV from domestic and foreign investors This inflow should see rapid expansion in the charging infrastructure and the commencement of domestic manufacturing of EV components and batteries Incentivization of consumers to encourage adoption will need to continue to grow the demand.

While the number of EVs sold in FY23 till the beginning of Dec outdoes the numbers sold in the previous years by more than 1000% it is not enough If India has to achieve its zero-emission target of 2070, the speed of adoption has to be accelerated many folds

Target 2030

India's switch to EVs brings benefits at levels India has a sizable quantity of renewable energy sources and a ready pool of skilled personnel for the manufacturing and technology sectors, and all could benefit from this transition According to a report from the CEEW Centre for Energy Finance (CEEW-CEF), the Indian market for electric vehicles (EVs) will offer a US$206 billion potential by 2030 This projection is predicated on the notion that India will keep moving forward steadily toward achieving its challenging goal by 2030 It would necessitate an overall expenditure above 180 billion dollars on building infrastructure and vehicles As per the Government declared numbers, the EV market has attracted $6 billion in investment in 2021 and is gaining quick traction from venture capitalists and private equity investors

Another study by the India Energy Storage Alliance (IESA) predicted that by 2026 the market for electric vehicles would increase at a CAGR 36% and EV batteries at a CAGR of 30% In the interim, the IESA analysis predicts that between 2022 and 2030, the Indian market for electric cars (EVs) will increase at a compound annual growth rate (CAGR) of 49% By 2030, the electric car industry will generate 50 million indirect employment and 10 million direct jobs, and the EV finance market will be worth $50 billion (source Niti Aayog) The Indian Government is committed to making India a global leader in the electric vehicle (EV) market To achieve this goal, Government will need to continue efforts to boost demand, reduce the ICE & EV parity, improve the supply chain and promote substantial investment in R&D

Recently launched initiatives such as PLI SCHEME, Tax Reduction on Electric Vehicles, Battery Swapping Policy, Special Electric Mobility Zone, and FAME-II have reaped good results They need to evolve continuously in response to the needs of the dynamically changing market

Key Takeaways

In the end, the potential for expansion of the new electric vehicles in the Indian market is contingent not only on the availability of capital for original equipment manufacturers, EV component manufacturers, battery manufacturers, and charge point operators but also on advancements in infrastructure and a variety of purchasing options for customers The Government has been rolling out incentives to boost market demand in priority segments such as electric twowheelers It has been localizing the production of key components such as electric vehicles, and auto components through respective PLI schemes While some success has been seen in the efforts, they fall way short of the demand We are headed on the right path A lot has been done, but there is still a lot of spadework yet to be done for EV transition to become a reality

SHRESHTH MISHRA

CO-FOUNDER, SIMPLE ENERGY

A blueprint for future

Amidst growing recognition of the need to transition to clean, sustainable modes of powering the wheels of the global industry, the automotive sector over the past few years has proactively sought to envision an emission-free, modern and tech-driven future for itself Electric vehicles have emerged as the predominant torchbearers of this change for the sector, witnessing promising growth globally and within India The Indian government expects EVs in India to contribute to 30% of total vehicle sales by 2030, driven by its comprehensive subsidies and incentive schemes

The electric two-wheeler segment, in particular, has showcased noteworthy growth over the past year Between 2021-22, it has recorded a whopping 305.68% growth with 6 15 365 units soldin 2022 compared to 1,51,685 units the year before This growth trajectory for the sector is likely to continue, spurred by beneficent policy interventions, and committed efforts on part of relevant stakeholders The recently announced customs duty exemption for capital goods required to produce lithium-ion batteries during the 2023 Budget is a good instance of the former

Expansion of the electric two-wheeler segment is accordingly bringing a welcome diversification with respect to key players. Many new-age start-ups, driven by an innovative vision toward ushering in the green mobility revolution, are striving to bring aspirational yet affordable product offerings to the segment Against this backdrop, a commitment to delivering on customer needs, resolving pain points, and leveraging modern technology will pivotally determine future growth

Government incentives, combined with industry-wide efforts to build a strong supporting EV ecosystem will eventually make electric twowheelers more affordable, attractive options for would-be buyers A robust charging infrastructure, and innovations at the battery level, will be important vectors in establishing this growth-centric ecosystem An approach that focuses on using cutting-edge technology while striving to give a competitive offering to the customer, will be determinant After all, Indian buyers today expect nothing but the best and are now being offered choices that are techladen, well-performing, and reliable

Issues such as range anxiety, slow charging, and questionable quality are being and must continue to be actively addressed to quell customer apprehensions Adopting a customer-first approach and being laser-focused on addressing all challenges that might crop up at this stage, will crucially affect the success of the market Ultimately, for electric two-wheelers to be adopted on a mass scale, we must strive to make them not only smart, secure and comfortable, but also accessible and affordable

Since we are slowly but surely foraying into a revolutionary era of mobility, it seems like a befitting time for manufacturers in this space to give it their all The ecological and ethical commitment towards making clean mobility a reality must be earnest but must also be energized by the vision of innovation Remaining quality-oriented, with robust core technologies at the battery level, along with a drive to bring intuitive, intelligent modifications, will all help us envision a future-ready vehicle It seems like a good time to push limits and leverage our intellectual and industrial capabilities to truly enable ourselves, and our customers, to ride into the future of mobility